From 1494646c23158f931e526ffd60f08dda92ef0b1b Mon Sep 17 00:00:00 2001
From: Reinhold Kainhofer <reinhold@kainhofer.com>
Date: Thu, 12 Jan 2023 11:04:43 +0100
Subject: [PATCH] Annuities: For lifelong annuities, implement survival payment
at the end of the final year of the lift table (only relevant if final qx<0).
---
R/InsuranceTarif.R | 10 ++++++----
1 file changed, 6 insertions(+), 4 deletions(-)
diff --git a/R/InsuranceTarif.R b/R/InsuranceTarif.R
index a1c02f5..0fe1323 100644
--- a/R/InsuranceTarif.R
+++ b/R/InsuranceTarif.R
@@ -299,11 +299,13 @@ InsuranceTarif = R6Class(
}
age = params$ContractData$technicalAge
maxAge = MortalityTables::getOmega(params$ActuarialBases$mortalityTable)
- policyPeriod = params$ContractData$policyPeriod
+ policyTerm = min(maxAge + 1 - age, params$ContractData$policyPeriod)
list(
- l = min(maxAge - age, policyPeriod) + 1,
- policyTerm = min(maxAge - age, policyPeriod),
- premiumTerm = min(policyPeriod, params$ContractData$premiumPeriod)
+ l = min(maxAge +1 - age, policyTerm),
+ # maxAge is the last age with a given death probability, so it can be included in the policy term!
+ # The policy must end AFTER that final year, not at the beginning!
+ policyTerm = policyTerm,
+ premiumTerm = min(policyTerm, params$ContractData$premiumPeriod)
)
},
--
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